SaaS Agreement (Software as a Service)

A Software-as-a-Service (SaaS) Agreement is a contract between suppliers and customers of software.

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Last updated October 21, 2025

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Frequently asked questions

Benefits of SaaS for customers

  • With SaaS, there is no need to install new software so you have the opportunity of improved IT operations without stressful costs and management concerns. Updates can also be installed periodically on an automatic basis, or as required.
  • It’s accessible. Upon subscription, users are normally asked to create a quick online account with the SaaS provider. The SaaS software can be accessed and opened on any computer or internet enabled device. This helps to avoid the trouble of having only a couple of primary computers with access.
  • Having a maintenance clause within the agreement will also simplify the need to synchronise any updates or problems with the software on your own, as these will be transferred to the supplier. Under a maintenance clause, the suppliers will agree to resolve any IT issues for you.

What does this SaaS Agreement cover?

  • SaaS Services and Support
  • Restrictions and Responsibilities
  • Confidentiality and Proprietary Rights
  • Payment of Fees
  • Term and Termination
  • Warranty and Disclaimer
  • Indemnity
  • Limitation on liability
  • General Terms
  • Statement of Work
  • Service Level Terms
  • Support Terms
  • Order Form

Further information: 

View Sample SaaS Agreement (Software as a Service)

The Legal Risk Score of a SaaS Agreement (Software as a Service) Template is Low

Our legal team have marked this document as low risk considering:

  • The agreement provides the Company with the ability to unilaterally change fees and introduce new charges, which could lead to unexpected financial obligations for the user.
  • The user is required to ensure that their use of the services complies with all applicable laws and regulations, which places the burden of legal compliance entirely on the user.
  • The document allows the Company extensive rights to use and disclose aggregate data derived from the user's data, which might raise concerns about data privacy and commercial confidentiality.

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